If you recently renewed your favorite perfume bottle, you’ve probably noticed a sharp price increase, often between 10% and 15% in a single year. This trend is explained by a perfect storm of raw material crises and strategic repositioning by luxury brands.
The primary cause is industrial: soaring energy costs have severely impacted glass manufacturing, an extremely energy-intensive process, while the price of cardboard for packaging and beet alcohol—the base of all fragrances—has reached record highs.
Added to this is the scarcity of certain natural raw materials such as jasmine absolute, vanilla, and patchouli, whose harvests are increasingly disrupted by climate change, forcing perfumers to pay substantial premiums to secure their supplies.
Alongside these logistical constraints, beauty giants like L’Oréal, Estée Lauder, and LVMH are implementing a « premiumization » strategy, increasing margins to compensate for declining sales volumes and reinforce the exclusivity of their products.
By investing heavily in global brand ambassadors and increasingly expensive digital advertising campaigns, brands pass these marketing costs directly on to the consumer in the final retail price.
Finally, the end of the era of aggressive discounts in major retail chains, in favor of stricter fixed-price policies, contributes to this widespread perception of high prices, making a signature scent a true luxury investment, on par with a fashion accessory.